Implementing Organizational Project Management (OPM) Using OPM3®

Delivered by: Jane BettertonPMP, OPM3P

bettersw@swcp.com

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• Work authorized lacks priority relative to other existing work within an organization– No Alignment to Strategic Plan & Resource Gridlock

• Execution is challenging– Planning is easier for most organizations

• Plans are too detailed or not detailed enough– Unclear Scope & Scope Creep

• Organizations do not account for roadblocks– No tool to manage and assess risks that hinder success

Why Do Organizations Fail to Deliver Results or Deliver Results in Chaos?

Organizational Project Management (OPM) Framework provides organizations a consistent approach to planning and executing projects and deliver results to support the organization’s bottom line.

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What is Organizational Project Management (OPM)?

• The systematic management of projects, programs and portfolios in alignment with the achievement of strategic goals– The consistent use and development of best

practices to assure the successful completion of projects

• A project management approach with an emphasis on continuous improvement to deliver business results– Approach is focused on supporting the

organization’s bottom line

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Developing an OPM Framework -Challenges

• Measuring an OPM Framework’s effectiveness

• Balancing robustness of framework with the value delivered

• Defining a common terminology to build systems and governance approaches

• Integrating OPM Framework with other current performance improvement approaches and regulatory systems in use – Examples: ISO 9001, ISO 17025, QNM/ Baldrige, ERP

Initiatives

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PMI’s Standard to Develop an OPM Using a Maturity Framework is OPM3*

• OPM3 measures an organization’s maturity which is the robustness of its Organizational Project Management (OPM) Infrastructure and how well it ties the management of projects, programs and portfolios to its stated strategic goals

• Provides an objective criteria to measure effectiveness of a Project Management Office (PMO)

• Highlights needed areas of improvement for organizations to help them achieve better business results

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*Organizational Project Management Maturity Model

OPM3 is a registered trademark

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OPM3 Measures OPM Using 2 Layers

Standardize Measure Control Continuously Improve

Portfolio

Program

Project

Layer 1 PM Focus Area

Layer 2 Process Improvement Stage

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Layer 1 - Projects, Programs & Portfolios

• Portfolio Management– A collection of projects and/or programs and other work

grouped together to facilitate effective management of that work to meet strategic objectives

– Are the strategic goals of the Organization Met?• Program Management

– A group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually

– Are the potential synergies of the project being exploited?

• Project Management– Involves processes for individual projects and

competencies for project management practitioners– Is the project on goal- on budget – on schedule?

Customer is satisfied?Jane Betterton - All Rights Reserved

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Organizational Project Management – Area of Focus

Organizational Strategy and Objectives(communicated through a strategic plan)

Strategic Planning(Responding to env. changes)

Initiatives(defined to accomplish strategic and operational objectives)

Project Portfolio

Operations Planning(Continuing to run the business)

Projects

Program 1 Program 2

Project 1 Project 2Project A Project B

Project C Project D

Organizational Resources

OP

M A

rea

of

Focu

s

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Layer 2 – How to Measure Degree of Maturity or Stage of Process Improvement

• Initial– Process unpredictable, poorly controlled, reactive

• Standardize – Process defined, used with some consistency, not measured

• Measure– Process defined, used more consistently, process measured

• Control– Process measured, consistent use, areas of non-use

documented

• Continuously Improve– Process measured, consistent use, measures are used to

proactively identify improvementsJane Betterton - All Rights Reserved

OPM3 – High Level View of Maturity

• Active Process

Governing Body

Established

• Documented &

Standardized

Processes

• Customer

Requirements

Driven Processes

Implemented

• Processes

Measured

• Project Change

Control Established

& Integrated

• Process Stability

Achieved

•Measurements Guide

Process Improvement

•Sustainable

Improvement Cycle

Established Ensures

Individual Project

Success

• Program

Management

Authorization

Process

• Program Level

Standards

• Program Level

WBS Framework

• Program Level

Resource/ Cost/

Schedule/ & Risk

Management

Processes

Measured

• Program Performance

Management & Predict

Future Performance

• Program Change &

Risk Management

Process

• Program

Measurement Based

Improvement &

Optimize Processes

• Program Control

Processes Linked to

Portfolio

• Portfolio

Management

Component

Authorization

Process

• Portfolio Level

Standards

• Balance Portfolio

Process Measures

Established,

Measured &

Analyzed

• Portfolio & SP

Processes Linked

• Prioritize Portfolio

Based on Metrics &

Predict Future

Performance

• Portfolio Level

Change & Risk

Management Process

• Portfolio

Measurement Based

Improvement &

Optimize Processes

• Program Control

Processes Linked to

Program Level

Port

folio

Pro

gram

Pro

ject

Standardized Measure Control Improve10

OPM3 Is Designed to Make a Business Decision About Needed Level of Maturity

• Active Process

Governing Body

Established

• Documented &

Standardized

Processes

• Customer

Requirements

Driven Processes

Implemented

• Processes

Measured

• Project Change

Control Established

& Integrated

• Process Stability

Achieved

•Measurements Guide

Process Improvement

•Sustainable

Improvement Cycle

Established Ensures

Individual Project

Success

• Program

Management

Authorization

Process

• Program Level

Standards

• Program Level

WBS Framework

• Program Level

Resource/ Cost/

Schedule/ & Risk

Management

Processes

Measured

• Program Performance

Management & Predict

Future Performance

• Program Change &

Risk Management

Process

• Program

Measurement Based

Improvement &

Optimize Processes

• Program Control

Processes Linked to

Portfolio

• Portfolio

Management

Component

Authorization

Process

• Portfolio Level

Standards

• Balance Portfolio

Process Measures

Established,

Measured &

Analyzed

• Portfolio & SP

Processes Linked

• Prioritize Portfolio

Based on Metrics &

Predict Future

Performance

• Portfolio Level

Change & Risk

Management Process

• Portfolio

Measurement Based

Improvement &

Optimize Processes

• Program Control

Processes Linked to

Program Level

Port

folio

Pro

gram

Pro

ject

Standardized Measure Control Improve11

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OPM3 Benefits• Leverages the correlation between an organizations PM

capabilities and effectiveness in implementing strategy

• Provides a comprehensive body of knowledge regarding what constitutes Best Practices in Organizational Project Management environment

• An objective maturity assessment determines existing capabilities and needed capabilities

• Provides a baseline for deciding improvements to pursue and defer

• For improvements an organization pursues, OPM3 provides documented evidence improvements were achieved

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How to Get Started –Lessons from the Field

• Assess your organization’s readiness and define activities that align with readiness

• Evaluate other initiatives in the organization and look for ways to enhance using OPM/ OPM3 versus compete

• Tie your OPM/ OPM3 efforts to business objectives and achieving business results. Avoid the project management perfection trap

• Start small with OPM3 Assessments- Pick 1 domain and standardize level– Start assessments only when your organization is

ready.

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Managed/ Control

Example of Comprehensive OPM Improvement Plan

OPM Path

Po

rtfo

lioP

rogr

amP

roje

ctTr

ain

ing

Define/ Measure

FY2013 FY2014-15

Repeatable/ Standardize

Standardize Strategic Project Execution & Tie to Measures

Develop Central Resource & Budget Forecast System

Develop PM Governance Approach (PMO Function to Assure Compliance to Internal Standards)

Standardize Risk Management & Change Control Processes

Measure & Analyze Cycle Times

PM for Teams – All Employees / MS Project – All Employees

PM Maturity– Sr. Mgmt.Standardizing PM Processes –

Selected Staff Portfolio Management–

Program & Portfolio Mgrs.

Develop Integrated PM Schedule, Cost & Performance Reporting and Analysis

System

Standardize Milestones & Schedule Tracking

Develop Measures That Assure Synergies Are Leveraged (Resource Utilization, rework, etc.)

Implement Change Management & Risk Management

Implement Standard Approach / Template

Identify Program Mgmt. Processes to Standardize

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APPENDIX – REFERENCE MATERIAL

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“Original” Maturity Model – Capability Maturity Model Integrated

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Inital

Maturity Model - Basics

1. Most models have 4-6 levels2. Level selected based on “value”

delivered3. Moving from one level to the

next is not a discrete event

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Best Practices Appendix

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Best Practices – What Are They & How Are They Achieved

• A Best Practice is an optimal way currently recognized by an organization or industry to achieve a stated goal or objective

• For organizational project management Best Practices are focused on the ability to deliver projects predictably, consistently, and successfully to implement organizational strategies

• In OPM3 Best Practices are assessed by an organization demonstrating supporting capabilities as observed through measurable outcomes

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Best Practices Directory - Example

• 1400 Staff Projects With Competent Resources

– The organization provides projects with an adequate workforce with the right level of competence fore each project-related role. • Domains: Projects, Standardize

• 1410 Manage Project Resource Pool

– The organization has the mechanisms, systems, and processes that provide projects with professional project managers and competent, committed project team members• Domains: Project, Standardize

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Best Practices - Core Components

• Capability– Specific competency that must exist in an organization to execute

project management processes.– Capabilities are incremental steps that aggregate to one or more Best

Practices

• Outcome– Existence of a Capability is demonstrated by the existence of one or

more corresponding Outcomes

• Key Performance Indicator (KPI)– The criterion by which an organization can determine, quantitatively

or qualitatively

• Dependencies– Series of capabilities leading to a single Best Practice– Existence of a Best Practice depends on the existence of another Best

Practice

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Capabilities - Example

• BP Name: 1410 Manage Project Resource Pool

–Capability ID 1410.030 Develop Skills Database

• Outcome: The organization has a skills database to determine training requirements

• KPI: Skills Gap Analysis Results

• Metric Type: Exists/ Does not exist

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Improvement Planning - Example• BP Name: 1410 Manage Project Resource Pool

Capability Name Status

1410.010 Know the Importance of a Achieved

Competent Resource Pool

1410.020 Identify Process Requirements for PartialResource Pool

5220.030 Implement Staff Acquisition Policies Gap

& Procedures

1410.030 Develop a Skills Database Partial

1400.040 Review Human Resource Plan Partial

Key Concept: Improvement plan suggests order and identifies dependencies from other best practice areas

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